Friday, April 30, 2010

Torrent Power to invest Rs 6,000 cr for Dahej plant


Torrent Power Ltd (TPL) will make investments worth Rs 6,000 crore on setting up a 1,200 MW gas-based power plant at Dahej to meet the requirements of the upcoming Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR).
The Dahej Special Economic Zone which is a part of the PCPIR has ONGC (26 per cent) GAIL (19 per cent) and Gujarat State Petroleum Corporation Ltd (5 per cent) as anchor tenants.
TPL, the co-developer of the Dahej SEZ for power generation and distribution infrastructure has set up Torrent Energy Ltd (TEL) for the gas-based combined cycle power project at Dahej.
Source : Torrent Power to invest Rs 6,000 cr for Dahej plant


Vedanta supplies 200 MW to Orissa


Orissa which is currently facing power shortages has been rescued by Vedanta by supplying 200 MW to the state grid at an average rate of Rs.3.60 per unit as against the open market average cost of Rs 4.34 per unit and over Rs 9 per unit at spot market due to current demand- supply mismatch.
Vedanta's power plant at Jharsuguda contributes about 14 per cent to the state grid of the state's demand. This has facilitated direct procurement of power by the state and reduced structured power cuts.
Vedanta has commissioned nine units of 135 MW each and it further plans to commission one of the four units of 600 MW Independent Power Plant each by end September.


CESC to develop Rs 32 bn power plant


CESC will soon revive its 600 MW power project in Balaghar in West Bengal by infusing Rs 32 billion.
During the mid 1990s the Balaghar project was shelved due to unavoidable circumstances. As per CESC officials, due to the power shortages in the West Bengal they have planned to revive it. In the next two to three days, CESC will apply for environmental clearance for the Balaghar project.
About 800 acre of land is already available for this project while coal linkages need to be worked out on.


200 MW wind power projects every year: CLP


CLP Power India Pvt Ltd, which has already operationalised five winds farms in India aims to develop wind power projects of 200 MW every year. In addition to this, the company also plans to set up its first ever solar power project in India.
CLP currently has a wind power capacity of 446 MW and wind power projects with a cumulative capacity of about 263 MW are being executed in Gujarat, Karnataka, Tamil Nadu and Mahashtra. The company further plans to set up another wind power project of about 50 MW in Rajasthan.
Apart from these green projects, the company is developing a supercritical coal-fired power plant at Jhajjar in Haryana. The company would require a capex of about Rs 5,000 crore for their power projects in the country.
Source : 200 MW wind power projects every year: CLP



SJVNL to foray into wind and solar sector


Himachal Pradesh- based Satluj Jal Vidyut Nigam Limited (SJVNL) which is present in the hydro power sector will soon enter the wind, solar energy and the trading sector.
The company’s 1,500 MW Nathpa Jhkari project is one of the best in the country whuch makes about Rs 450 crore per year.
Apart from this one, SJVNL will soon commission World Bank funded 412 MW Rampur project by September 2013 which will add another Rs 200 crore. The company has also bagged work in Uttarakhand, Arunachal Pradesh, Manipur, Bhutan and Nepal.
SJVNL is a joint venture between the Centre and the Himachal government in which the Centre holds 74.5 per cent stake.
Source : SJVNL to foray into wind and solar sector


Rs 1198 crore EPC contract for Madhucon


Madhucon Projects has been recently awarded a EPC contract worth Rs 1198 crore under International Competitive Bidding (ICB) for setting up of 2 x 150 MW coastal based Thermal Power project at Tamminapatnain and Mommidi villages at Chilakur Mandal, SPSR Nellore District, Andhra Pradesh.
The project is expected to be complete in 27 months. This 2 x 150 MW coastal based thermal power project is a part of the Phase II of the total envisaged 1920 MW being set up by Simhapuri Energy.
Source : Rs 1198 crore EPC contract for Madhucon


NPCIL to set up venture with IOC, Nalco


Nuclear Power Corporation of India (NPCIL ) which recently signed an agreement with NTPC to set up nuclear power plants is now planning to set up similar joint ventures with Indian Oil Corporation (IOC) and aluminium major National Aluminium Company (Nalco) in the immediate future.
NPCIL’s agreement with IOC and Nalco would be slightly different where IOC and Nalco will be primarily equity partners for certain specific projects.
NPCIL's will do bring in equity partners to raise financial resources to fuel the country's nuclear power programme that aims at achieving a generation capacity of 35,000 MW by 2020 and 45,000 MW by 2032. The new entity formed by NPCIL and NTPC will identify nuclear power projects and explore ways to finance them.
Source : NPCIL to set up venture with IOC, Nalco

Increasing Opportunities : Birla Power to invest Rs 5,000 cr in thermal & solar power projects


Birla Power Solutions will invest nearly Rs 5,000 crore to set up thermal and solar power projects in the next three years, according tochairman Yash Birla. Mr Birla on Wednesday said his group has floated a special purpose vehicle (SPV) — Birla Urja — to run the power business. Birla Power holds a 51% stake in the SPV, while the balance is with group companies.
According to him, his group will set up 600 mw of thermal power plant capacity in Maharashtra and 125 mw solar power capacity in Andhra Pradesh, Rajasthan, Uttaranchal and Haryana. The investments in the power projects will have a debt-equity ratio of 70:30. “The equity component will be funded through various options, including contribution from the promoters and private equity funds, while debt will come from institutions like State Bank of India and Power Finance corporation,” Mr Birla said.
However, analysts are unclear on how the group will fund such large projects. A power analyst said Mr Birla needs to chip in least Rs 1,500 crore to finance the projects. The present market capitalisation of Birla Solutions is Rs 160 crore. The stock gained 10% to close at Rs 3.91. Birla Cotsyn, another company of his group, is valued at Rs 120 crore.
“Half of the power generated from the plants will be sold to state distribution companies, while the balance will be for the captive use of group facilities,” said Mr Birla. Meanwhile, Birla Power on Wednesday informed BSE that its board would meet on March 25 to discuss the fund-raising options

Source: The Economic times

UP clears seven new thermal power plants

The Uttar Pradesh cabinet has the signing of a memorandum of understanding (MoU) for setting up seven new thermal power plants in the State. These projects, entailing an investment of Rs 25,000 crore will generate an additional 4,500 MW of power. Uttar Pradesh Power Corporation Ltd Chairman Navneet Sehgal said Each of these plants are coming up in the private sector and would be set up through the MOU route. Under the arrangement, the state would provide land and water for setting up and running the plant. 

Five of the proposed plants are to be set up by Bajaj Hindusthan Ltd., the country's leading sugar producer. The company has planned foray into thermal energy sector and plans to set up power plants at Pilibhit, Lakhimpur-Kheri, Shahjahanpur, Gonda and Utraula. Lanco Infratech has received the nod to set up a 1,320 MW thermal power station at Fatehpur.
The company also plans to set up power plants at Pilibhit, Lakhimpur-Kheri, Shahjahanpur, Gonda and Utraula. Lanco Infratech has received the nod to set up a 1,320 MW thermal power station at Fatehpur.
Besides this, the state government has given also clearance to Bajaj Hindusthan to set up a 19,809-mw coal-fired power plant in Lalitpur district of Bundelkhand. The project will be implemented by Lalitpur Power Generation Company Ltd, a SPV set up by UPPCL. Around 150 acres of land has been identified for the project at Mirchwara village of Lalitpur. Water will be sourced from the Rajghat dam through a pipe line. The project, which is expected to commence operations by 2012, will provide 90% of the electricity generated to the state.

PFC to focus on green projects


To make a mark in the renewable energy sector, Power Finance Corporation (PFC) will incorporate a subsidiary to focus on non-conventional energy sources such as wind power, solar and biomass projects.
In 2009-10, PFC sanctioned Rs 603 crore for renewable energy projects and disbursed Rs 266 crore. In 2010-11, PFC is expected to sanction Rs 1,500 crore and disburse Rs 350 crore in the segment.
To focus more on the green segment, PFC has also signed a deal with Gujarat Energy Development Agency for development of renewable energy generation projects. In 2008-09, it had sanctioned Rs 560 crore for projects in the sector. It has also got a mandate to assist state power utilities to prepare clean development mechanism projects under the Kyoto Protocol.
Source : PFC to focus on green projects


Govt to take ONGC gas price to USD 4.20/mmBtu


The government will double the price of natural gas produced by Oil and Natural Gas Corp (ONGC) to USD 4.20 per mmBtu, to help ONGC break even in gas business.
The oil ministry will soon move Cabinet note for raising price of the gas, produced by ONGC and OIL from fields given to them on nomination basis to rates equivalent to that produced from RIL’s KG-D6 fields.
Earlier the oil ministry had proposed to raise the APM gas price from USD 1.79 per million British thermal unit to USD 4.20 per mmBtu in phases over the next three years. The oil ministry had previously proposed an immediate 30 per cent hike in the price of gas produced by ONGC and OIL to USD 2.3 per mmBtu and in three more stages to USD 4.2 per mmBtu.
Source : Govt to take ONGC gas price to USD 4.20/mmBtu



NTPC, CIL form JV for acquisition of coal blocks


Thursday, April 29, 2010
State-run National Thermal Power Corporation (NTPC) will carry out projects of over 7,500 MW in Madhya Pradesh over the next five to six years.
Three coal based projects will be developed by NTPC at Bamitha, Gadarwara and Khargaone in Madhya Pradesh.
The detailed project report and feasibility report will be complete in next six months, and within one year work will begin on these projects.
Source : NTPC, CIL form JV for acquisition of coal blocks


7,500 MW to be commissioned in MP by NTPC


Thursday, April 29, 2010
State-run National Thermal Power Corporation (NTPC) will carry out projects of over 7,500 MW in Madhya Pradesh over the next five to six years.
Three coal based projects will be developed by NTPC at Bamitha, Gadarwara and Khargaone in Madhya Pradesh.
The detailed project report and feasibility report will be complete in next six months, and within one year work will begin on these projects.
Source : 7,500 MW to be commissioned in MP by NTPC


ETA to Invest in Indian Thermal Power Plant


ETA Power Generation plans to invest about INR 5,200 crore ($1.1bn) to set up a 1,320MW power plant in Tamil Nadu, India.
The double unit thermal power plant will mark the UAE firm's entry into the Indian power generation market.
ETA Power Generation director AA Sadagopan told Business Standard that the firm is in the process of acquiring land for the proposed project.
"We are planning to opt for project clearance once the land acquisition is over, which is in the final stage," Sadagopan said.
The first unit of the plant is expected to be complete by March 2014 with the second unit to follow in six to nine months.
Source : Power Technology - ETA to Invest in Indian Thermal Power Plant

Siemens to Supply Equipment for Power Grid Expansion in Qatar



Siemens Energy has received orders to supply substations and switchgear valued at €510m to Qatar General Water & Electricity Corporation (Kahramaa).
The order encompasses the supply of 15 turnkey substations including transformers, control and protection equipment, as well as extension and modification of existing substations.
The construction of a new 400kV substation to connect the Qatar network to the GCC grid is included in the contract.
Siemens will supply gas-insulated switchgear, protection equipment and equipment for online condition monitoring.
The substations will be distributed across the whole country, including the cities of Doha, Dukhan and Maesaieed.
Source : Power Technology - Siemens to Supply Equipment for Power Grid Expansion in Qatar

Venezuela Plans Thermoelectric Power Plants


Venezuela plans to invest $669m in three thermoelectric power plants to connect to the national grid and meet rising demand.
The projects together will add 900MW of power to the grid and include a 300MW power plant in San Diego Cabruticas, according to The Wall Street Journal.
The plants will be managed by state oil firm Petroleos de Venezuela (PDVSA) and are expected to be complete by October 2010.
Venezuela has been facing a power crisis since late 2009, after a drought reduced the efficiency of its hydropower plants that provides the country with about three-quarters of its power.
Source : Power Technology - Venezuela Plans Thermoelectric Power Plants


BG Group to Sell Stake in Seabank


iBG Group is to sell its 50% interest in Seabank Power to Electricity First, a Cheung Kong Infrastructure Holdings (CKI) subsidiary for $320m.
Seabank Power, a 50/50 joint venture between BG Group and Scottish and Southern Energy (SSE) owns and operates the 1,140MW combined-cycle gas turbine (CCGT) Seabank power plant near Bristol, UK.
The power station comprises a combined cycle gas turbine power station, a gas compressor station and a gas pipeline.
The plant that sells its entire capacity to SSE, entered into operation in two phases – a 780MW phase I in 2000 and 380MW phase II in 2001.
CKI plans to on-sell part of the investment in the project to its partner Hongkong Electric Holdings in line with its energy investments in the UK, Canada, Australia and New Zealand.
The deal is expected to close in second quarter of 2010, subject to conditions.
Source : Power Technology - BG Group to Sell Stake in Seabank

Thursday, April 29, 2010

BHEL witnesses 27% growth in intellectual capital in FY10


As a result of constant thrust on developing new technologies and products,Bharat Heavy Electricals (BHEL) registered a 27% growth in its intellectual capital in FY 2009-10. The year witnessed filing of 264 patents and copy rights, marking filing of one patent / copyright every working day.
During fiscal 2009-10, BHEL (Q,N,C,F)* invested Rs 8,290 million on R&D efforts - 20% higher than the previous year. With R&D spend at 2.4% of the turnover; BHEL is the highest spender on R&D in India for its kind of industry. Significantly, BHEL is one of the only four Indian companies and the only Indian Public Sector Co. figuring in `The Global Innovation 1,000` of Booz & Co., a list of 1,000 publicly-traded companies which are biggest spenders on R&D in the world.
Commercialization of products and systems developed by way of in-house Research and Development contributed around 20% to company`s total turnover of Rs 340,500 million in 2009-10.
To address the needs of infrastructure sectors of the economy, BHEL has successfully developed various products and systems. Significant developments during the year include a new design variant of condenser for 660 MW steam turbines having supercritical parameters, high temperature superconducting (HTSC) power transformer; highest rating, more efficient 310 MVA single phase generator transformers for upcoming ultra mega power projects, current transformer for 765 kV ultra high voltage (UHV) transmission substations. These in-house developments will not only address the future needs but also result in enhancing product efficiencies, optimization of designs and enhancing of functional capabilities, etc.
R&D and technology development are of strategic importance to the company as it operates in a competitive environment where technology is a major factor. BHEL`s long term R&D program focuses on emerging technology areas such as clean coal technologies; nano technology; hydrogen energy technologies; superconducting applications and solar technologies; products and systems for ultra-high voltage transmission segment like 765 kV & 1200 kV for addressing country`s future demands.
Shares of Bharat Heavy Electricals gained Rs 15.6, or 0.63%, to trade at Rs 2,478.75. The total volume of shares traded was 44,975 at the BSE (12.43 p.m., Thursday).


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Punj Lloyd bags Cuddalore refinery project


Punj Lloyd Group has been awarded the Cuddalore Refinery Project of Nagarjuna Oil Corporation Ltd in Tamil Nadu. The project entails installation of Inside Battery Limit (ISBL) units and interconnection pipe rack at the refinery.
Cuddalore refinery is an important and complex project. Once complete, the refinery will produce Euro IV auto fuels in accordance with the latest emission norms and will meet the increasing energy demands of the country.
The installation of ISBL units involves setting up of crude and vacuum distillation units, gasoline and saturated gas plant and catalytic hydro-de sulphurisation and osomerisation units. The company will carry out construction related procurement, building and civil work, structural work including prefabrication, mechanical equipment erection including revamp, piping, painting and insulation, NDE services, electrical and instrumentation. The project will be completed within18 months
Source : Punj Lloyd bags Cuddalore refinery project

Videocon to set up power plant in Punjab


The Videocon Group is keen on developing infrastructure in Punjab in order to set up 1,000 MW power plant with an investment of Rs 5,000 crore.
Currently apart from this plant, Videocon will set up three thermal power plants aggregating 5,000 MW in Gujarat, West Bengal and Chhattisgarh. The group through its Special Purpose Vehicle, Pipavava Energy Pvt Ltd will set up a coal-based super critical thermal power project near Pipavav port in Gujarat.
Source : Videocon to set up power plant in Punjab

CLP plans to set up three wind plants in India


Hong Kong based CLP Holdings Ltd will build a solar farm in Thailand and set up three wind projects in India as the company plans to shift to clean energy sources to generate power.
CLP produces about 10 per cent of its electricity from clean energy, including nuclear power, and wants 20 per cent to be generated by non-fossil fuels by 2020. Among its renewable energy investments, the company plans to set up a wind farm offshore Hong Kong which will cost about $900 million.
The utility will set up three wind-power plants in India in the next few months.
Source : CLP plans to set up three wind plants in India

Sterlite Energy's 2400 MW plant delayed


Sterlite Energy’s 2400 MW power plant which is being developed in Jharsuguda, Orissa, will be delayed by three months.
As per earlier plans, the first unit of the 4 x 600 MW plant were supposed to be operational by now, but now with the delay it will be operational only by June 2011. The remainder three units are expected to be operational by the end of 2011.
As per sources, the delay was because of change in visa rules regarding the Chinese workers but now the European consultant to carry on with the work.
Source : Sterlite Energy's 2400 MW plant delayed

NPCIL, NTPC ink deal for nuclear project


Nuclear Power Corporation of India Ltd (NPCIL) and NTPC Ltd have signed a deal for setting up a joint venture to set up nuclear power projects in the country.
As per the terms of the JV, NPCIL will have 51 per cent equity and the balance 49 per cent will be held by NTPC. The joint venture will be operational within a few months and the venture is likely to set up two 700 MW reactors at a site identified by the Department of Atomic Energy.
Source : NPCIL, NTPC ink deal for nuclear project

ETA Plans Indian Thermal Plant


ETA Power Generation plans to invest about INR 5,200 crore ($ 1.1bn) to set up a 1,320MW power plant in Tamil Nadu, India.
The double unit thermal power plant will mark the UAE firm's entry into the Indian power generation market.
ETA Power Generation Director AA Sadagopan told Business Standard that the firm is in the process of acquiring land for the proposed project.
"We are planning to opt for project clearance once the land acquisition is over, which is in the final stage," Sadagopan said.
The first unit of the plant is expected to be complete by March 2014 and second unit would follow in six to nine months.
Source : Power Technology - ETA Plans Indian Thermal Plant


GP Strategies Operating Subsidiary Awarded Major International Contracts in Energy Sector


Global performance improvement solutions provider General Physics Corporation (GP), a subsidiary of GP Strategies Corporation, has recently won international contracts to provide EtaPRO™ Performance and Condition Monitoring Systems for 104 electric generating units owned and operated by Eskom Holdings, Gas Natural, Électricité de France (EDF) and International Power. The EtaPRO System provides real-time monitoring and integrated thermodynamic modeling of power plants to improve efficiency and profitability while reducing carbon emissions. These multi-year contract awards, which exceed US $7.9 million, will add to the more than 700 generating units in the existing EtaPRO installation base.
GP will provide EtaPRO Systems for Eskom's fleet of 86 coal-fired electric power generating units, representing over 37,600MWe of installed capacity in South Africa. Gas Natural has ordered EtaPRO Systems for an additional 11 combined cycle units in Spain and Mexico, which will raise the number of generating units monitored by EtaPRO for Gas Natural to 31. The additional EtaPRO contracts for EDF (France and UK) and International Power (Australia) apply to combined cycle power plants in their respective locations.
Joe Nasal, GP senior vice president, stated, "GP is pleased that these major power companies have selected our technologies. We look forward to our new working relationships with Eskom and EDF, as well as expanding our existing relationships with Gas Natural and International Power. With these awards, our EtaPRO System will now be deployed in 30 countries, improving power plant availability, capacity and efficiency worldwide. We are confident that these companies will benefit financially while also reducing greenhouse gas emissions through the use of our products and associated engineering services."
Source : Power Technology - GP Strategies Operating Subsidiary Awarded Major International Contracts in Energy Sector

Spain Launches Gas-Fired Plant


Gas Natural has launched a 425MW gas-fired power plant in Spain.
The €500m ($666m) plant, installed by GE, is the first of two 425MW units Gas Natural plans to build in Barcelona, adjacent to a regasification plant owned by Enagas.
The plant will use cold water from the neighbouring regasification plant to cool hot water.
Spain is the world's third-largest importer of liquefied natural gas via six regasification plants.
Source : Power Technology - Spain Launches Gas-Fired Plant

Enel and Inter Rao to Build Russian Nuclear Plant


Enel and Russian company Inter Rao have teamed up to build a nuclear power plant in Kaliningrad, Russia.
The memorandum of understanding (MOU) will work towards the development of the 2,340MW nuclear plant, comprising of two 1,170MW units.
The technology is expected to enter into operation between 2016 and 2018.
The plant is expected to export a significant proportion of electricity to nearby European markets.
Inter Rao UES said it will set the terms and conditions for foreign investors in the Baltic NPP project and develop technical proposals for distribution of the NPP's electric power.
Source : Power Technology - Enel and Inter Rao to Build Russian Nuclear Plant

NTPC to set up 4000 mw non-UMPP plant in Madhya Pradesh - dnaindia.com


NTPC will set up at least three 4000 mw power plants through tie-ups with state governments. The company, which did not win any of the four ultra mega power projects (with capacity of at least 4000 mw) that have been awarded by the central government so far, plans to build these plants at Chhattisgarh, Karnataka and Madhya Pradesh.

While NTPC is set to place bulk equipment orders for the Chhattisgarh and Karnataka plants, it is doing feasibility studies for the MP plant.

“We want to start construction on our 4000 mw plant in Madhya Pradesh by the end of this year,” said R S Sharma, chairman and managing director, NTPC. “We are planning to build two more plants in the state, for which the environmental studies are going on”.

NTPC’s plans are significant because only Reliance Power is currently building three such large projects, which the Anil-Dhirubhai Ambani Group-promoted company won through aggressive bidding.

While NTPC has written to the power ministry seeking coal linkages for the MP plant, it has already received it for the Chhattisgarh and Karnataka plants.

The three plants will consume 60 mt of coal annually.

The government is worried about the ability of Reliance Power to raise money to fund its UMPPs.
It recently introduced a clause that bars the company from bidding for the upcoming UMPP in Orissa before completing at least one of its UMPP — NTPC is comfortable with its cash reserves, said analysts.
“NTPC has a very strong balance sheet and it is planning to take its capacity to 75,000 mw by the end of the 12th Plan. The company has cash reserves of Rs 18,000 on its books while its debt:equity ratio was 0.54:1 in 2009. This is the only company that can come up with large power projects without facing fund raising problems,” said Rupesh Sankhe, equity analysts with Angel Broking.

NTPC currently has a capacity of 31,704 mw.
Meanwhile, Coal India and NTPC have formed a 50:50 joint venture to acquire coal mines in India and abroad. CIL NTPC Urja Pvt Ltd will carry out acquisitions of greenfield or operational coal and lignites in India and abroad, NTPC said.

Source : NTPC to set up 4000 mw non-UMPP plant in Madhya Pradesh - dnaindia.com


Wednesday, April 28, 2010

Radar deal clears the sky for �7bn offshore wind farm expansion - Times Online


Energy companies have agreed to pay for a new radar system to allay Ministry of Defence concerns about the threat to national security posed by wind farms.
The deal paves the way for a £7 billion investment in offshore wind turbines.
The MoD had objected to five new wind farms off the Norfolk coast, but it withdrew its opposition yesterday after an agreement between the Crown Estate and four energy companies.
Plans for 924 wind turbines off the East Coast had alarmed the Royal Air Force, which said that the turbines could cause a security threat by creating blind spots in air defences.
In a landmark deal brokered by Serco, the defence services company, a Lockheed Martin TPS-77 radar system will be installed at Remote Radar Head (RRH) Trimingham in the autumn of next year to coincide with the opening of an offshore wind farm, with 88 turbines, at Sheringham Shoal.
As the number of wind farms has increased, the number of radar blackout zones has also risen. Aircraft passing through the area can disappear in the blackout and air traffic controllers can lose their position. Tests have shown that the Lockheed Martin radar can filter the movement of offshore turbines with other air and seaborne activity.
The £20 million cost of the system will be shared by the Crown Estate (which owns the seabed out to 12 nautical miles from the coastline of the UK), the Department of Energy and Climate Change and four energy companies, which are proposing to build wind farms in the Greater Wash in the next few years. The companies are Scira Offshore Energy, which is behind the Sheringham Shoal farm; Centrica; Warwick Energy; and RWE npower renewables.
Nicola Vaughan, head of aviation at RenewableUK, the trade body, said: “This was a major obstacle to offshore wind farms in the Greater Wash, which has now been lifted.”
Planning applications for four further wind farms, in the line of sight of Trimingham, are expected to be brought forward. If all five farms were developed, the turbines could deliver more than 3,000 megawatts of energy — enough to power 1.7 million homes.
Source : Radar deal clears the sky for �7bn offshore wind farm expansion - Times Online

Germany opens its first offshore wind farm - Environment- msnbc.com


BERLIN - Germany opened its first offshore wind farm Tuesday, inaugurating twelve windmills towering almost as high as the Washington Monument over the North Sea.
Experts said that the Alpha Ventus project is a late arrival for a country that deems itself in the vanguard of clean energy and announced plans for the farm almost a decade ago.
"There have been delays and things have been pushed back because the interest in big investments was not very strong," energy expert Claudia Kemfert of the DIW think tank told The Associated Press.
Great Britain and Denmark have already several hundred megawatts worth of offshore wind power on the grid. Kemfert said she thinks Europe's largest economy is going to catch up as 25 other German wind farms in the North and Baltic Seas consisting of some 1,650 more windmills have already been approved.
"I think Germany is highly competitive in this field," Kemfert said.
Alpha Ventus, which is only a test field, will produce some 60 megawatts, enough for some 50,000 households onshore.
Environment Minister Norbert Roettgen on Tuesday called the project a pioneer project "that will push wide open the gate to the age of renewable energies."
Ulf Gerder of the wind power lobbying group BWE said the project is further offshore — 45 kilometers (28 miles) — and in deeper water — 30 meters (100 feet) — than any other European wind farm.
There was no alternative to such difficult projects, he said, because almost all of the German coastline consists of national park land or sea bird refuges, he said.
"If one takes environmental concerns seriously, one cannot build windmills there," Gerder said.
In the long run, mastering extreme conditions might be an advantage, he said, because much of an estimated offshore potential of some 140,000 megawatts across the European Union will likely not be built near shore.
Completion of Alpha Ventus came only after the German government shored up its offshore wind power subsidies in the beginning of 2009, guaranteeing for 12 years 15 euro-cents (20.3 cents) for each kilowatt hour.
The government also promised some euro200 million in credit guarantees during the last year's recession.
Chancellor Angela Merkel's government announced in November that it would throw out the decade-old plan to abandon nuclear power by the year 2021. She says nuclear power is needed to meet Germany's climate change prevention goals.
Former Environment Minister Juergen Trittin, now a prominent figure for the opposition Green Party, told the AP if offshore wind power is to have a future, nuclear power has to be phased out as quickly as possible.
"Those who want to invest look very closely if they have to compete with old nuclear plants producing very cheaply," Trittin said.
Source : Germany opens its first offshore wind farm - Environment- msnbc.com

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